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Magna Recommends Rejection of "Mini-Tender" Offer
Magna Recommends Rejection of "Mini-Tender" Offer Magna Recommends Rejection of "M...
About this update from Magna International Inc.
[{"type":"text","content":"\n\n\n\nMagna Recommends Rejection of \"Mini-Tender\" Offer\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nMagna Recommends Rejection of \"Mini-Tender\" Offer\nCanada NewsWire\nAURORA, ON, July 15, 2016\n\n\n\nAURORA, ON, July 15, 2016 /CNW/ - Magna International Inc. (TSX: MG; NYSE: MGA) announced today that it has received notice of an unsolicited \"mini-tender\" offer made by TRC Capital Corporation (\"TRC Capital\") to purchase up to 2,500,000 Magna Common Shares, or approximately 0.63% of Magna's outstanding Common Shares, at a price of CDN $41.85 per share. The offering price represents a discount of approximately 13.9% to yesterday's closing price of Magna Common Shares on the Toronto Stock Exchange (TSX) of CDN$48.63. In addition, the offer is highly conditional. TRC Capital's offer states that it may withdraw its offer if, among other things, the market price of Magna Common Shares falls below CDN $43.82, the closing price on the TSX on July 6, 2016. \n\nMagna does not endorse this unsolicited mini-tender offer and recommends that shareholders do not tender their shares. Magna is not associated with TRC Capital, its mini-tender offer or the mini-tender offer documentation.\n\nTRC Capital has made similar unsolicited mini-tender offers for shares of other public companies. Mini-tender offers typically seek to acquire less than 5% of a company's outstanding shares, thereby avoiding many disclosure and procedural requirements applicable to formal take-over bids and tender offers under Canadian and United States securities legislation.  \n\nThe Canadian Securities Administrators (CSA) have expressed serious concerns about mini‑tender offers, such as the possibility that investors might tender to a mini-tender offer based on a misunderstanding of the terms of the offer, including the per securities price available under the offer relative to the market price of such securities. Comments from the CSA on mini‑tenders can be found on the Ontario Securities Commission website at: http://www.osc.gov.on.ca/en/SecuritiesLaw_csa_19991210_61...